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Securitize tokenized assets hit $4.3 billion, revenue declines

In its first public-quarter results, Securitize posted a $21.7 million GAAP net loss despite adding about $1 billion in tokenized assets and lifting transaction volume to $5.3 billion.

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Securitize reported record average tokenized assets under management of $4.3 billion for the second quarter, up 16% year over year, but said revenue fell 5% to $14.4 million, worsening its earnings picture even as activity rose, according to The Defiant.

Tokenization revenue dropped 12% to $7.8 million, while asset-servicing revenue increased 3% to $6.6 million. The company said it added about $1 billion of tokenized assets during the quarter after declines in the prior two quarters, and aggregate transaction volume climbed to $5.3 billion, up 147% year over year.

Securitize also saw a decline in fund-services performance, with assets under administration down about 20% to $24.3 billion as of June 30, and it reported servicing 663 active funds. Total operating costs rose 56% to $24.1 million, with selling, general and administrative expenses up 133% to $8.2 million and compensation and benefits up 31% to $10.5 million.

The quarter produced an operating loss of $9.7 million, and adjusted EBITDA swung to a $5.5 million loss from a $1.8 million profit. The Defiant noted the results were released after Securitize began trading publicly on the New York Stock Exchange under the SECZ ticker on July 2, and the company scheduled a discussion of the results for 8:30 a.m. ET on Aug. 13.

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